Organisation: The Organisation for Economic Co-operation and Development (OECD)
This study examines outcomes-based financing (OBF) as a set of financing approaches that links payments to measurable results. It explores how OBF has evolved from experimental pilots to more mainstream adoption in development policies and practices. The study defines OBF's core features, analyses existing evidence on its effectiveness across sectors including education, health, employment and climate action, and gathers implementation lessons from governments and development organisations.
Through an extensive comparative review of the experiences of 14 national governments and international development institutions, the study identifies enabling factors for successful OBF implementation, including leadership commitment, supportive policy frameworks, robust data systems, stakeholder alignment, and rigorous but adaptive programme design. It also addresses common challenges in OBF adoption and institutional approaches to integrating these mechanisms within existing operations.
The study further discusses current organisational strategies for knowledge management and continuous learning that support OBF implementation, while considering future pathways for institutionalising outcomes-focused approaches in new financing for development architecture.